There are many benefits obtained by filing a personal bankruptcy, but the main goal is to discharge or eliminate your debt. Many of our clients are surprised when they receive their discharge order and it does not include a list of the debts that were eliminated by the filing. How do you know which debts were (and which were not) discharged in your case?
When you file a Chapter 7, Chapter 11, or Chapter 13 bankruptcy, you must make full financial disclosure, which means listing all of your assets and all of your debts. This means that you will be listing both dischargeable (credit cards, medical bills) and non-dischargeable (child support, certain taxes) debts. As such, your bankruptcy schedules are not reflective of which debts were eliminated.
In fact, you will not be provided with a list outlining each of your discharged debts from the court. The bankruptcy court operates under the general rule that if a debt is eligible to be discharged, then it is discharged, unless the court makes a specific ruling otherwise as the result of a creditor objecting to the dischargeability of a particular debt. However, there are certain types of debts that are automatically non-dischargeable. Those debts are listed in 11 U.S.C. §523. To learn more about non-dischargeable debts, please read our blog titled “Beware! Some debts are NOT discharged in bankruptcy.”
So what do you do if a lender asks you to provide a list of your discharged debts? You can contact us to confirm whether a certain debt was discharged in your case. However, if the lender is insistent on receiving a list of discharged debts, the best you can do is provide a copy of your bankruptcy schedules, a copy of your discharge order, and our contact information.
Please keep in mind that every bankruptcy matter is different. If you are considering filing for bankruptcy protection, and you would like to schedule a no-cost consultation to discuss your options, please contact our office by completing the form on this website or calling us at (954) 932-5377.